Service charges

Service charges

Your service charge covers the cost of providing communal and shared services in your building and, in some cases, the surrounding area. 

We reinvest all service charges into managing and maintaining your building. On this page, you can find helpful information about service charges, how we calculate them, and more.

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What are service charges?

Service charges cover the cost of shared services in your building. These might include cleaning, lighting, maintaining, and repairing communal spaces. 

They are separate from your rent, which supports the upkeep and management of your home.

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How are service charges calculated?

We calculate service charges based on the actual cost of providing these services. We work hard to ensure they are fair and affordable, and we do not profit from them.

We use costs from the previous year and create an estimate of how much they will cost in the following year.

What’s included in service charges?

Your service charge covers a range of communal services, which could include:Money Icon

  • Cleaning and upkeep of shared areas.
  • Maintenance of lifts and intercom systems.
  • Fire safety equipment checks.
  • Communal utilities like lighting and heating in shared spaces.

You can see a full breakdown in your service charge statement. 

You can also find specific information about the sort of things we charge for at the bottom of this page.

Changes in service charges

Why do service charges change? Service charge
Service charges may go up or down based on factors like rising energy prices or additional services. We regularly review contracts and look for ways to provide value for money while maintaining quality.

Fixed service charges
These are set at the beginning of the year and don’t change. They are typically used for general needs residents.

Variable service charges
This means the service charge may be adjusted at the end of the year if actual costs vary. This is typically used for leaseholders. More information about this can be found on our actuals page.

Our commitment to affordability
We make every effort to keep charges as low as possible and cap increases for social residents when needed.

Your rights, feedback & support with paying

Can I review my service charges?
Yes. We provide detailed statements showing what’s included. Please contact us if you have any questions about this.

How can I share my feedback?
We value your input. You can help shape services by taking part in budget discussions or letting us know if something isn’t working as it should.

Need help paying your charges? Have questions or concerns?
If you’re struggling, please contact us as soon as possible. We can offer advice, support, or explore payment options to ease the burden.

Contact us at our usual details, or call our Tenancy Sustainment Officer, Abdul Malik, on 020 7780 3077.

2024-25 Service Charge FAQs

Why has the 'building insurance' charge increased?

Recent economic changes and the departure of insurers from the social housing sector have led to higher premiums. In 2023, we made a significant investment to assess the rebuild costs of all THCH-managed properties to ensure sufficient insurance was placed.

With this information, we have revised our allocation approach to use rebuild costs as the basis of insurance charges, whereas in the past we allocated insurance costs based on the number of bedrooms in a property.

Find out more

Why has the 'bulk waste' charge increased?

The collection of bulk waste has increased mainly due to new government rules introduced in 2023. This change led to higher disposal costs for companies, impacting residents' service charges. Additionally, Tower Hamlets experienced a significant surge in fly-tipping incidents, further worsening the situation.

Why has the 'fire safety equipment' charge increased?

This is due to us needing additional resource to carry out our non-technical checks that help us adhere to Fire Safety (England) Regulations.

The additional resource will help us control the amount of reactive communal repairs that are raised in relation to fire safety.

Charges

We want you to know what sort of things we charge you for and why. Below you can find detailed information about the sort of charges you can expect to find as part of your service charge.

Cleaning and upkeep

  • Estate & block cleaning: cleaning of internal and external shared areas like entrances, hallways, bin stores, stairs. This includes cost of materials, equipment, deep cleans and rapid response to health & safety risks.
  • Window cleaning: cleaning of communal windows or open window areas. You are responsible for cleaning the windows inside your home.

All of these charges are allocated to your block, so are shared by you and your neighbours.

Environmental and outdoor

  • Bin maintenance and storage: hiring, maintaining and cleaning large bins for household waste. Includes annual deep cleans of bins, chutes and underground refuse systems.
  • *Grounds maintenance: upkeep of gardens, green spaces, and outdoor communal areas.
  • Pest control: prevention and treatment of pest issues in shared spaces.
  • *Playground maintenance: ensuring children’s play areas are safe and well-maintained.
  • Rubbish clearance: removal of large waste items and fly-tipping from communal areas.

Unless specified, all of these charges are allocated to your block, so are shared by you and your neighbours.

*These charges are split by estate, meaning you and your neighbours on your estate will share the cost. Read more about grounds maintenance on our 'Looking after your estate' page.

Management and miscellaneous

  • 3rd party managing agents: for estates/blocks where we don't own the freehold and the freeholder employs a management company to provide services.
  • *Audit fee: for independently commissioned audits to review our service charges and ensure they are correct and fair.
  • **Building insurance: providing building insurance for shared spaces, protecting against structural damage.
  • Lift insurance: insurance premium for your lift.
  • ***Management fee: organising and managing the services provided to your building (e.g. IT, income, production, communication, accounting, general overheads, debt recovery, consultations).
  • TV aerials/satellites: maintaining shared television aerials for a clear signal.

Unless specified, all of these charges are allocated to your block, so are shared by you and your neighbours.

*This charged is allocated across all leaseholders and shared owner, so is shared by those two groups of residents.

**This charge is allocated based on rebuild costs, whereas in the past we allocated this based on the number of bedrooms in a property. To read in more detail about this, head to our 'Building insurance ' page.

***This charge is allocated per home, so the cost is split evenly between all THCH residents.

Repairs and maintenance

  • Communal repairs:  repairing shared parts of the building, including roofs, walls, and drainage.
  • Communal ventilation:  keeping shared ventilation systems working for a healthy environment.
  • Drainage:  maintaining shared drainage and sewage systems to prevent blockages and ensure water flows properly.
  • Fire equipment maintenance:  includes regular maintenance, testing and repair of fire alarms, extinguishers, emergency and any other essential fire equipment. Any costs are split across the block.
  • Lift maintenance:  servicing, testing and repairs to ensure lifts remain safe and operational. 
  • Lighting repairs: maintaining and fixing lighting systems in communal areas.

All of these charges are allocated to your block, so are shared by you and your neighbours.

Safety and security

  • CCTV: maintaining and operating any security cameras in communal areas.
  • Door entry systems: maintaining and repairing intercoms and key fob systems for secure access.
  • Emergency lighting: lighting systems that guide residents during power outages or emergencies.
  • Fire Risk Assessments (FRAs): assessing any risks that could cause a fire and any actions that will reduce these risks.
  • Security: any broader security measures, such as patrols, concierge, or CCTV monitoring.

All of these charges are allocated to your block, so are shared by you and your neighbours.

Utilities and services

  • Communal electricity: electricity used shared spaces like hallways, lifts, door entry systems and outdoor lighting. This includes any safety and testing work.
  • Communal gas: gas services in shared spaces, where applicable.
  • Communal heating: heating systems for shared warmth and hot water. This includes any safety, testing, servicing and repair work.
  • *Personal heating: heating for your home, not your shared spaces. If you're on a fixed charge you'll pay the same every month. If you're on a variable charge, you'll pay towards the collectively used amount.
  • Water storage and pumps: water pumps that ensure proper water pressure for all residents, as well as ensuring that the water system is clean and safe when water goes to your household.

All of these charges are allocated to your block, so are shared by you and your neighbours.

*This charge is divided between all tenants based on many bedrooms you have. Leaseholders will pay a % stated in their lease. It's not based on everyone using it all day, but will ensure you can heat your home.

Water rates (Peter & Painter House)

  • Residents living in Peter and Painter House do not have an individual water meter. We pay the water company for the usage and apportion the cost per home.
  • Residents living in Peter House will pay an equal share. The charge for residents living in Painter House will depend on how many bedrooms you have.
  • Your charge will reflect how much water was used over previous years.